A soft and steady start to ASX trading is expected later this morning after Wall Street ended Friday with gains ahead of the expected rate cut from the US Federal Reserve early this coming Thursday, Sydney time.
While eurozone shares rose 0.3% on Friday the US S&P 500 closed up a solid 0.7% helped by good US earnings reports and 2.1% annual GDP growth in the June quarter, according to the first estimate issued on Friday night.
That was better than expected with strong consumer spending (but weak business investment).
Bond yields generally fell further with the Australian ten-year bond yield falling to a new record low on RBA (1.23%) talk of lower for longer interest rates.
While oil prices rose a bit as tensions with Iran continued, metal prices fell as did the iron ore price on the back of news that Vale will restart some production, but jumped more than 3% on Thursday and Friday.
Dovish comments from RBA Governor, Phillip Lowe about the chances of future rate cuts and a rising $US saw the $A fall to just over 69.10 US cents at Saturday morning’s close.
Reflecting the positive global lead ASX 200 futures ended the week up 19 points or 0.3% pointing to a positive start to trade for the local market later this morning.
That will be after a record week for the ASX with the All Ords breaking and then setting new all-time highs above the long-held high set on November 1, 2007, while the ASX 200 went close to reaching its all-time high but fell short twice.
The All Ordinaries closed the week 93.1 points, or 1.4%, higher at 6,879.3, after trading above 6,900 on Thursday.
The ASX 200 Index finished the week 93.1 points, or 1.4% up at 6,793.4, after ending Thursday’s trade within 10 points of its highest-ever close of 6828.
Unlike the week before the major banks led the market gains, adding more than 30 points to that 93 point gain for the ASX 200 over the week.
NAB closed the week 3.6% higher at $28.49, Westpac was up 2.5% at $28.57, shares in the Commonwealth Bank rose 0.6% to $82.59 and ANZ shares ended up 1.5% at $27.78.
The NAB did best after revealing it had found a new CEO in the shape of Ross McEwan, a former CBA executive and currently CEO of RBS in the UK.
Other majors also did well over the week. Woolworths shares were up 2.6% at $35.23 while Wesfarmers rose 3.4% to $39.74. CSL shares edged up 0.8% to $226.29.
Energy stocks were firmer as oil prices recovered some of their heavy losses of the previous week.
Woodside shares added 2.2% to $34.34, Santos shares were up 4% to $7.13, Oil Search added 5.8% to end the week at $7.06, Origin Energy jumped 4.5% to $7.85, WorleyParsons surged 11% to $16.09 and Beach Energy jumped 8.7% higher to $2.06.
Iluka Resources fell 14.7% to $9.28 after the company’s June quarter production and sales figures disappointed investors.
